Tc Energy Corporation · TSX:TRP
Tc Energy — TransCanada — IPO Roadshow (March 2016)
18 slides from Tc Energy's IPO roadshow presentation, Mar 17, 2016
Slide 1: Prospectus Information
Prospectus Information An amended and restated preliminary short form prospectus containing important information relating to the securities described in this presentation has not yet been filed with the securities regulatory authorities in each of the provinces and territories of Canada. A copy of
Slide 2: Forward Looking Information
Forward Looking Information This presentation includes “forward-looking information” and “forward-looking statements” (collectively, “forward-looking information”) which is intended to provide potential investors with information regarding TransCanada Corporation (“TransCanada” or “the Corporation”)
Slide 3: Non-GAAP Measures and Additional Information
Non-GAAP Measures and Additional Information Certain information presented in this presentation with respect to TransCanada and Columbia includes certain financial measures which do not have any standardized meaning as prescribed by U.S. GAAP and therefore may not be comparable to similar measures p
Slide 4: Presenters
Presenters Russ Girling, President and Chief Executive Officer Don Marchand, EVP, Corporate Development and CFO 5
Slide 5: Transaction Highlights
Transaction Highlights Purchase Price TransCanada to acquire Columbia Pipeline Group, Inc. (CPGX or Columbia) for US$25.50 per CPGX share in an all-cash deal Represents a 11 per cent premium to the closing price of Columbia shares on the NYSE of US$23.00 as of March 16, 2016 and a 32 per cent premiu
Slide 6: Transaction Highlights continued
Transaction Highlights continued Financing Plan Concurrent $4.2 billion subscription receipts bought deal to fund, in part, the purchase price Holders of subscription receipts will be entitled to dividend equivalent payments in respect of, and paid concurrently with, any dividends on the common shar
Slide 7: Premium natural gas pipeline and storage assets
Premium natural gas pipeline and storage assets Extensive position in the Marcellus and Utica shale regions FERC regulated assets generate stable and predictable earnings and cash flow US$7.3 billion portfolio of contracted, accretive growth and modernization investments Strategic Rationale Secures
Slide 8: Columbia Pipeline Group Asset Overview
Columbia Pipeline Group Asset Overview Columbia Gas Transmission 11,272 mile (18,141 km) FERC pipeline with 286 Bcf of working gas storage capacity and average throughput of 3.9 Bcf/d Strong base business undergoing significant expansion to connect growing Marcellus/Utica supply Columbia Gulf Transm
Slide 9: Creates one of North America's largest regulated natural gas transmission businesses
Creates one of North America’s largest regulated natural gas transmission businesses 91,000 km (56,900 miles) of gas pipeline 664 Bcf of storage capacity Complements our existing regulated natural gas pipeline and storage assets Long-term, fee-based contracts Diversified customer base Adds to basin
Slide 10: Predictability and Stability of EBITDA
Predictability and Stability of EBITDA TransCanada 2015 Adjusted EBITDA* Pro Forma 2015 Adjusted EBITDA*,** Regulated & Contracted Gas Pipelines 57% Contracted Liquids Pipelines 22% Contracted Energy 11% Merchant Energy 10% Regulated & Contracted Gas Pipelines 62% Contracted Liquids Pipelines 20% Co
Slide 11: Positioned to Capture Growing Marcellus and Utica Production
Positioned to Capture Growing Marcellus and Utica Production Significant growth in production expected Asset footprint favourably situated relative to production Source: EIA and IHS CERA, February 2016 Bcf/d Columbia Gas Transmission Columbia Gulf Transmission Millennium Pipeline (47.5%) Marcellus/U
Slide 12: Columbia Pipeline Group Capital Program
Columbia Pipeline Group Capital Program * Columbia share in billions of U.S. dollars. Certain projects are subject to various conditions including regulatory approvals. Asset Project Capital Cost (US$)* FERC Status Expected In-Service Gas Modernization I 0.6 Approved 2017 – 2018 Modernization II 1.1
Slide 13: Industry Leading Pro Forma Capital Program
Industry Leading Pro Forma Capital Program Project Capital Cost* Expected In-Service Date* Columbia Pipeline Group US7.3 2016-2021 Houston Lateral & Terminal US0.6 2016 Topolobampo US1.0 2016 Mazatlan US0.4 2016 Tuxpan-Tula US0.5 2017 Canadian Mainline 0.7 2016-2017 NGTL System 5.4 2016-2018 Grand R
Slide 14: Strategic Portfolio Management
Strategic Portfolio Management Selling U.S. Northeast Power Assets Advisors engaged Process underway Monetization of Minority Interest in Mexican Natural Gas Pipeline Business Advisor selection underway Indications of interest received Proceeds to repay asset sale bridge facility Exiting U.S. Mercha
Slide 15: Financial Highlights
Financial Highlights Expected to be accretive to earnings per share in the first full year of ownership and thereafter as $23 billion of near-term commercially secured projects enter service Increases 2015 Pro Forma Adjusted EBITDA from regulated and long-term contracted assets to approximately 92 p
Slide 16: Key Takeaways
Key Takeaways Acquisition creates one of North America’s largest regulated natural gas transmission businesses Complements our existing assets Adds to basin diversification and access to large markets Provides another platform for continued organic growth Transformational changes position company fo
Slide 17: Acquisition of Columbia Pipeline Group, Inc.
March 17, 2016 Acquisition of Columbia Pipeline Group, Inc.
Slide 18: Acquisition of Columbia Pipeline Group, Inc.
Acquisition of Columbia Pipeline Group, Inc. March 17, 2016 (e) TransCanada